As the sibling says, the market rate is set by the banks - that's what LIBOR is. The central bank rate only sets an effective floor by offering a minimum coupon on government debt. This is partly why things get weird around zero.
There's no shortage of money, just a shortage of people and companies willing and able to borrow it.
(There are some subtleties here over things like the central bank "deposit window")
There's no shortage of money, just a shortage of people and companies willing and able to borrow it.
(There are some subtleties here over things like the central bank "deposit window")